Alternative Fuels…OMG its LNG and CNG

Alternative Fuels 227 x 190Enjoyed Jared Stedl’s comments  at the Intermodal Association of Chicago dinner on March 4, 2013.

What I learned:

1.  Cost

  • Compressed Natural Gas (CNG) is 40% cheaper than diesel.  $4.15/gallon for diesel vs $2.25/gallon for CNG or Liquified Natural Gas (LNG).
  • CNG engines can be cost more than $35,000 more than a diesel engine.
  • 18 month – 3 year payback to switch from CNG from Diesel.

2.  Fleets

  • 20% of all US buses use LNG or CNG
  • 50% of all waste hauler orders from the factory are CNG

3.  Environmental Impact

  • NG reduces up to 30% of the CHG and 85% of the particulate matter…this is good

4.  Challenges

  • Still to early for to provide definitive cost benefit analysis.
  • NG vehicles require more maintenance.
  • Limited locations to get the fuel, typically customized for the user on their site.